Understanding General Power of Attorney and Attorney Types

A Power of Attorney (POA) is a legal document that grants an individual, referred to as the "attorney" or "agent," the authority to act on behalf of another person, known as the "principal." This document is particularly useful in situations where the principal is unable to handle specific matters due to absence, illness, or other constraints.

Key parties involved in a POA:

1. Principal: The person who grants the authority.
2. Attorney/Agent: The individual who receives the authority to act on the principal’s behalf.
3. Witnesses: Individuals who validate the execution of the POA during the registration process.

Types of Power of Attorney:

1. General Power of Attorney (GPA): Grants broad powers to the attorney to act on the principal’s behalf in various matters.
2. Special Power of Attorney (SPA): Limits the attorney’s authority to specific tasks or transactions, such as selling a property or managing a bank account.

For example, if you are an NRI managing property in India, you can issue a special power of attorney to a trusted family member or legal representative to handle property transactions on your behalf.

To make a Power of Attorney legally valid in India, it must be properly executed and registered. Follow these steps to ensure compliance:

1. Draft the Power of Attorney

• Clearly mention the type of POA (general or special) and specify the scope of authority granted to the attorney.
• Include essential details such as the names, addresses, and identification details of both the principal and the attorney.
• Outline the purpose and duration of the POA, if applicable.

2. Notarisation or registration

• General POAs must be notarised to validate the document.
• Special POAs involving immovable property transactions must be registered with the Sub-Registrar’s office under the Indian Registration Act, 1908.

3. Submit required documents

• Identification proof (e.g., Aadhaar card, passport, or PAN card) of both the principal and the attorney.
• Address proof of both parties.
• Relevant property documents (if applicable).
• Two passport-sized photographs of the principal and the attorney.

4. Verification and signing

• Both the principal and the attorney must appear before the notary or Sub-Registrar for verification.
• Witnesses must also be present to sign the document.

Additional considerations for NRIs:

For Non-Resident Indians (NRIs), the process involves additional steps:

• Draft the POA in the country of residence.
• Have it attested by the Indian Embassy or Consulate.
• Send the attested document to India for registration at the Sub-Registrar’s office.

Pro Tip: Ensure that the POA is specific and clearly outlines the attorney’s responsibilities to avoid misuse or legal complications. Start preparing your Power of Attorney draft today to safeguard your interests.

While a Power of Attorney grants significant authority, it is not without limitations. Indian law imposes restrictions to protect the principal’s rights and prevent misuse. Here are five key limitations:

1. Actions after the principal’s death

A POA becomes invalid upon the death of the principal. The attorney cannot act on behalf of the deceased, and the estate is managed according to the will or inheritance laws.

2. Illegal or unauthorised actions

The attorney cannot engage in any activities that are illegal, immoral, or beyond the scope of the authority granted in the POA.

3. Property transfers without explicit permission

The attorney cannot sell, transfer, or mortgage the principal’s property without explicit written consent. For instance, if the POA does not mention property transactions, the attorney cannot legally execute such actions.

4. Family-related decisions requiring court approval

Certain family-related matters, such as adoption or guardianship, require court approval and cannot be executed solely through a POA.

5. Overriding the principal’s rights

The attorney cannot override the principal’s legal ownership rights. For example, the attorney cannot claim ownership of the principal’s property, even if they are managing it on their behalf.

Actionable Advice: Consult a legal expert to ensure that the POA is drafted and executed in compliance with Indian laws. This will help you clarify the rights and restrictions associated with appointing an attorney.